Disruption to the market norms

The United States housing market has experienced an unprecedented period of volatility over the last half decade. We have experienced historically low interest rates, equally historic price appreciation, seeminly insatiable buyer demand that was brought about by the artificially low interest rates and the Covid lockdowns-which ultimately led to a rebalancing of interest rates, decreased buyer demand and somewhat stabilized home values. With all these changes brought about in the marketplace, there is one area that hasn’t changed-the fees agents charge for selling your home.

Since the 1990’s, the real estate industry has been the beneficiary of massive productivity gains brought about by technological advances that have made the job of the agent operate much more efficiently. The once burdensome tasks such as marketing property, communication with prospective clients, client management, lender and title company communications, as well as the execution of all related documents: have become greatly simplified by the advancements in high-speed internet and electronic document executions. Homes listed for sale by your agent appear online on the multi-list real estate site, as well as numerous other internet home marketing sites such as Realtor.com and Zillow almost instantly. The relationships within the real estate industry between corporate entities ensures that the information is seamlessly shared once the home appears on MLS, thus making the first impression a buyer has of your home the one they see from the comfort of their couch. The execution of contracts has been streamlined by libraries of documents that are fill-in-the-blank, shared electronically for signatures and ultimately disseminated onto the lender and title representatives who then begin preparing the transaction for closing.

All the while agents have continued charging the same 3% fee on each side of the transaction (6% in total) that has been charged for over half a century. In the retail marketplace, increased productivity gains and efficiency are by-and-large conveyed to the consumer in the form of savings. Yes, there is still “work” that is physically demanded by the process. The showing of properties, contract negotiations, inspection/repairs all require the presence of your agent. However, as the industry has gained efficiency, I see far fewer agents attending the inspections as their client’s representative. For those experienced with home sales, the inspection period and repair requests are the most frequent times in which we can see a contract breakdown. If your agent can’t be bothered to represent you during inspections, it makes it very challenging for them to adequately represent you in a contemptuous negotiation over repairs they have not physically seen with explanation from the home inspector.

Make no mistake, good agents bring high value to your home sale process. Their knowledge of market conditions, home valuations, the understanding of processes and professional relationships with trusted contractors, helps ensure the home seller is being best represented in the sale of their home by someone equipped to get them the highest dollar possible for their home. A smoothly run transaction by professionals from start to finish is a value that most can’t put a price on. That said, all these factors considered, it does not justify the agent continuing to charge clients on an old commission model that has become obsolete by the shift in the landscape of the market. For example:

You list your home and it sells for $200,000.00

Your agent charges 3% to the seller side of the transaction = $6000.00

You agree to pay an additional but equal 3% to the buyer’s agent = $6000.00 for a totol of $12000.00 to respective agents.

But let’s say your home sells for $300,000.00, you are still charged the same 3% which = $9000.00. You are paying an additional $3000.00 for the same work. At the end of this transaction, you have paid $18,000.00 in agent fees, at 3% to each side, paying an additional $6000.00 for the same work performed on the $200k priced home. Adds up really quickly, the higher the home sells for, the fees increase exponentially. None of the efficiencies and advances in the industry are being felt on your bottom-line, isn’t it time they should?

You will hear a lot of agents say “they know their value” and argue against anything that potentially cuts into a reduction in their commissions. If pressed, it will be impossible for them to truly quantify their value in relation to all the efficiencies that are now part of the job. Bottom-line, they are continuing to charge the 1990’s rates simply because clients are willing to continue to pay them. I believe it is past time we disrupt the market and include our clients in the savings the industry has created. The flat fee pricing model I have developed is not built on percentages, but instead ONE price that covers pricing ranges and thresholds. With this flat fee model, at all home pricing levels, the rate is significantly below the standard 3%, actually providing real savings to the home seller on both sides of the transaction. Most cases the seller will be adding thousands back on their bottom-line!

This is not a gimmick, and it is most certainly not a reduction in services like some discount brokerages offer. I am simply offering sellers the opportunity to keep more of their hard-earned money while still receiving the same exceptional, concierge services my clients have always received. With over 15 years’ experience in the real estate industry as an agent serving the Tulsa metro and NE Oklahoma region, I have successfully managed well over a thousand home sales. Adding value to my real estate career is the 2+ decades I served as the elected Treasurer in Washington County, where one of the primary duties was being the annual collection of property taxes. This gives me an extensive background in home valuations, market condition analysis, and interaction with the public. I am highly sensitive to your interests and consider my number one job to be your advocate, as well as your representative.

My expertise in these fields is built on the foundation of my degree in finance and the practice of that discipline for the last 40 years. You will find I am well qualified, experienced and possess a high understanding of various financial markets, economics and the relational bearing these have on the various financial aspects of the real estate market. I am able to provide you with a level of financial guidance very few agents are able to match.

If you are contemplating selling your home, I encourage you to schedule an appointment so we can discuss how much money I can save you on the sale of your home, and more importantly, earn your trust in representing you as your fiduciary backstop. I am committed to ensuring you receive the same superior quality representation you deserve and expect, all while allowing you to keep more of the equity you have built in your home.